The difference between Director and Shareholders
Directors:
- Appointed by shareholders
- Responsible for managing the company’s affairs on behalf of the shareholders
Shareholders:
- Individuals or entities who own shares in the company
- The owners of the company
Summary
- Directors: Manage the company and may receive salaries and directors’ fees
- Shareholders: Investors who provide capital in return for potential returns
- Generally do not participate in daily operations (depending on the situation)
- May receive dividends
Additional Notes
- A person can be both a director and a shareholder
- In many SMEs, both roles are often held by the same person (commonly referred to as the “owner” or “boss”)